Amazon tech layoffs roll on -4-

RingCentral Inc. (RNG) joined the list of tech companies making layoffs with the November announcement of a plan to cut 10% of its workforce as part of a broader push to cut costs amid a deteriorating economic environment. The cloud-based communications company's stock jumped on news of the layoffs and of RingCentral's third-quarter earnings, which beat analysts' expectations.

In October, RingCentral was added to the list of "zombie" stocks compiled by equity research firm New Constructs.

Also read: RingCentral added to 'zombie' stocks list by equity research firm New Constructs

New Constructs, which uses machine learning and natural language processing to parse corporate filings and model economic earnings, described RingCentral as a "cash incinerator" at risk of declining to $0 per share.

Redfin

Also in November, Redfin (RDFN) announced another round of layoffs, with CEO Glenn Kelman saying that the company was laying off 13% of its staff, or 862 employees. The real-estate brokerage also announced the closure of RedfinNow, a service that bought homes for cash and resold them to buyers on the market.

"The housing market will get smaller in 2023," Kelman wrote in an email to staff. "A layoff is awful but we can't avoid it," he added.

Now read:'A layoff is awful but we can't avoid it:' Redfin lays off 13% of staff as housing market slows down

In June, Redfin laid off 8% of its staff, citing "years" of "fewer home sales."

Beyond Meat

Beyond Meat Inc. (BYND) made fresh job cuts in October, slashing about 19% of its global workforce. The company also issued a revenue warning amid softness in the plant-based-meat category, along with increased competition and inflation pressures. Beyond Meat said it would book a roughly $4 million one-time cash charge in the third quarter to cover the job cuts.

The cuts followed a 4% workforce reduction in August.

Related:Beyond Meat's stock edges lower on sales drop, growing losses

The pressures on the plant-based food company continue. In November, Beyond Meat reported a big drop in third-quarter revenue, escalating losses and tepid revenue guidance.

Twitter

Meta's job cuts came hot on the heels of layoffs at Twitter that affected about half of that company's 7,500 employees. In late October, Elon Musk bought Twitter for the inflated price of $44 billion and quickly launched an effort to slash costs at the unprofitable company.

Before the layoffs hit, Twitter faced a class-action lawsuit over a lack of notice to employees.

Also read:'I just killed it': Musk scraps Twitter's gray 'official' label just hours after its launch

The cuts, which came just before the midterm elections, also sparked concern about the microblogging site's ability to fight misinformation in the postelection period.

On Dec. 6, San Francisco City Attorney David Chiu told MarketWatch that he will look into the loss of janitors' jobs at Twitter.

Lyft

In November, Lyft Inc. (LYFT) announced plans to lay off 13% of its workforce, or about 683 employees. The ride-hailing company's executives described the move as a proactive step as they eye a possible recession and as they plan for the coming year.

Now read: Lyft lays off 13% of workers in second round of cuts this year, maintains financial guidance

The latest layoffs followed 60 job cuts in July; a hiring freeze through the end of the year was also implemented in September. In April 2020, in the early days of the pandemic, Lyft laid off nearly 1,000 employees and put another 288 on furlough.

Snap

Some companies confirmed their layoffs earlier in 2022. In August, Snap Inc. (SNAP)announced job cuts as part of a "broader strategic reprioritization" that would see the social-media company focus on cost cuts and aim for profit and positive free cash flow. The company said it would cut about 20% of its full-time employees.

"The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities," said Snap Chief Executive Evan Spiegel in a statement. "The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long-term future and reaccelerate our revenue growth."

Related: Snap stock rallies more than 10% after company confirms layoffs, launches restructuring

The Verge reported that Snap had more than 6,400 employees prior to the job cuts.

Robinhood

Also in August, Robinhood Markets Inc. (HOOD)announced plans to cut its workforce by 23%. The company, which was a launchpad for 2021's meme-stock phenomenon, cited a weaker economic environment and depressed trading activity.

Also read: Robinhood to lay off 23% of its workforce, with CEO admitting 'this is on me'

In April, Robinhood cut about 9% of its workforce. At that time, CEO Vlad Tenev wrote in a blog post that the company had grown from about 700 employees at the start of 2020 to nearly 3,800.

Coinbase

In July, Coinbase Global Inc. (COIN)announced plans to lay off 18% of its employees, just two weeks after extending a hiring freeze and rescinding some job offers. In a blog post, CEO Brian Armstrong said the decision was made "to ensure we stay healthy during this economic downturn."

Now read: Why Coinbase is laying off 18% of employees and what it means for crypto

The crypto exchange had expanded rapidly, from 1,250 employees at the beginning of 2021 to 4,948 at the end of March 2022. "I am the CEO, and the buck stops with me," said Armstrong, adding that the company grew too rapidly.

Shopify

Also in July, Shopify Inc. (SHOP.T)announced plans to lay off 10% of its staff, with the e-commerce company citing an evolving business landscape. In a blog post, Chief Executive Tobi Lütke explained that, as a result of the pandemic, Shopify had bet that the share of dollars going through e-commerce rather than physical retail would permanently leap ahead by five or even 10 years. "It's now clear that bet didn't pay off," he wrote. "What we see now is the mix reverting to roughly where pre-COVID data would have suggested it should be at this point."

Adobe

Adobe Inc. (ADBE) announced in December 2022 that it would cut about 100 jobs, mainly in sales, according to a Bloomberg report.

"As part of our ongoing and routine business prioritization, we have shifted some employees to positions that support critical initiatives and removed a small number of specific roles to balance resources against top priorities," said Adobe, in a statement emailed to MarketWatch.

Adobe was not doing companywide layoffs and was still hiring for critical roles across the company, it said. "The investments we're making today to drive innovation, expand our product portfolio and serve a growing number of customers will enable us to continue to drive strong growth," Adobe added.

The company has more than 28,000 employees worldwide.

GameStop

Videogame retailer and meme-stock darling GameStop Corp. (GME) also made cuts.

Speaking during a conference call to discuss the company's third-quarter results, GameStop CEO Matt Furlong described reductions in headcount during the back half of 2022, but did not give specific numbers. "We now have a firm understanding of the resources required to pursue opportunities in gaming," he said.

Additional reporting byTomi Kilgore, Mike Murphy, Anviksha Patel, Ciara Linnane, Levi Sumagaysay, Bill Peters, Jon Swartz and Emily Bary.

-James Rogers

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03-27-23 0916ET

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